Token Unlocks

Definition ∞ Token Unlocks represent scheduled events where previously restricted digital tokens become available for trading or transfer. These events are often part of a token’s initial distribution plan, designed to vest tokens allocated to founders, team members, or early investors over time. The release of a significant volume of tokens can introduce new supply into the market, potentially influencing the token’s price dynamics. Understanding these unlock schedules is vital for assessing future market supply and demand pressures.
Context ∞ The phenomenon of Token Unlocks is a recurring topic in crypto news, often preceding significant price movements or shifts in trading volume for specific digital assets. Current discussions often analyze the projected impact of upcoming unlocks on market liquidity and asset valuations, with a particular focus on large-cap projects. Investors and analysts monitor these events closely as potential catalysts for price discovery and portfolio rebalancing strategies.